We believe the future of work, play, and investing, will happen in digital communities, specifically owned by their members. These communities already exist, and they're called DAOs (Decentralised Autonomous Organisations).
DAOs represent a new paradigm of what's possible when communities come together, from pooling capital to try and buy a copy of the US constitution in under a week, to building some of the most important infrastructure in web3.
And DAO ecosystem is growing at an astonishing rate with the total value in DAO treasuries growing 325,000% - from 6m to $15bn in 18 months.
DAOs (Decentralised Autonomous Organisation) represent a new model for the way companies are organised and operate. DAOs give their members more control over the companies direction as well as a fair opportunity to gain ownership. Before diving further into DAOs we must first see how they are different from companies today.
Source: Aragon
DAOs are open, fully global, transparent organisations with a loose grassroots approach to structuring themselves.
<aside> 📜 Smart Contracts
DAOs are built on top of smart contracts. Rules can be created, and are upheld automatically without the need for human intervention. Smart Contracts allow members to trust that the DAO will do as they say they will and limit the potential of bad actors exploiting the DAO.
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<aside> 💰 Social Tokens
Most DAOs use tokens to riase capital, allow for voting and token gate communities. They represnet ownership and can often be bought and sold on secondary markets.
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<aside> 🏦 Treasury
A treasury is the community owned bank account, it will contain all the funds for the DAO and all transactions will be fully transparent. In order for a transaction to take place multiple signatures are required to autheticate and verify it, this is a safeguarding measure to ensure funds aren’t stolen.
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<aside> 📒 Proposals
The main way things are done in DAOs is through proposlas, they are used to make decisions and establish rules for the DAO. Anyone can make a proposal but a majority consensus is required to pass it.
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<aside> ✅ Governance
Once proposals are put forward members will vote on whether or not it should be passed, governance is typically facilitated through the DAOs social token which represents ownership.
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<aside> ⏱️ Seasons
DAOs use seasons to establish specific goals, they can be used to allign members to reach goals step by step. Seasons can vary in length but will usually run for a few months. Seasons enable DAOs to achieve their long term vision step by step.
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<aside> 🧑💻 Working Groups
Just like traditional organisations, DAOs need different departments to operate. These departments are known as working groups or teams and help delegate responsibility to the members most suited for the task. Some examples of working groups are: Researchers, Developers, Legal, Community and Treasury/Finance.
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